Bloomberg senior ETF analyst James Seyffart has sparked speculation about a potential Coinbase deal being the reason behind the US government’s recent Bitcoin transfer. The US government moved $2 billion in Bitcoin, seized from Silk Road to two addresses, as reported by Arkham Intelligence. This comes shortly after Donald Trump’s recent announcement to hold onto the government’s Bitcoin holdings.
Coinbase Deal In Focus
Arkham Intelligence reported that the US government split $2 billion in Bitcoin into two addresses: one holding 10,000 BTC worth $669.35 million and the other with 19,800 BTC worth $1.33 billion. They suggested this move indicates a 10,000 BTC deposit to an institutional custody service.
Commenting on this, Bloomberg analyst James Seyffart pointed to the US Marshals Service choosing Coinbase to manage its digital assets as a probable reason. Sharing the update, he stated, “Has to be this, right?”
Meanwhile, one user agreed with Seyffart, noting that the distribution schedule on the US Marshal’s website indicates a plan to spread the distribution over five years, not all at once. Seyffart responded, “Makes sense,” reinforcing the speculation.
In addition, MartyParty, a crypto influencer, also echoed this sentiment. He suggested that the US Marshals Service is sending Bitcoin to the Coinbase for custodianship, not to sell. According to a recent report, the US Marshals Service selected Coinbase Prime to provide custody and advanced trading services for its large-cap digital assets.
This partnership aims to streamline the management of popular cryptocurrencies, with the contract valued at $32.5 million over five years, with a possible six-month extension.
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US Govt’s Bitcoin Transfer Fuels Speculation
The recent US government’s Bitcoin movement has raised concerns about a potential selloff by the Biden administration. Several crypto enthusiasts criticized the administration, labeling it anti-crypto. Senator Cynthia Lummis remarked that the “Harris-Biden” administration, under the direction of Secretary Yellen and Senator Warren, continues with business as usual, hoping the public remains unaware.
In addition, Anthony Scaramucci has criticized the hard left for opposing a policy backed by Donald Trump, citing spite as the sole reason. Scaramucci finds it “odd” that a good policy has become a rallying cry for the opposition, which will ultimately disenfranchise 30 million potential Democratic voters in November.
Meanwhile, this move highlights the growing polarization in American politics, where bipartisan policies are met with resistance due to political vendettas. Scaramucci’s comments suggest that this approach may harm the Democratic Party’s chances in the upcoming elections, as it prioritizes opposition over the interests of cryptocurrency supporters.
However, the US Marshals Service’s decision to partner with Coinbase follows a comprehensive evaluation process. The strong track record of the leading crypto exchange and its ability to provide secure, institutional-grade crypto services at scale were key factors in their selection.
During writing, the BTC price was down over 1% to $67,300 during writing, with its trading volume soaring 57% over the last 24 hours to $39.36 billion. It has touched a high of $69,987.54 today, before falling to its current level.
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